maxxi Wrote: ------------------------------------------------------- > strae Wrote: > -------------------------------------------------- > ----- > If an independent high street is > > thriving, how does it come to be slowly and > surely > > taken over by chains? > > Sometimes because, as an area gets more > successful/prosperous, the shop Landlords (most of > the business premises on the Lane are rented > rather than owned) increase rents to the point > where only a chain, able to subsidise high rents > with tax breaks and other corporate strategies, > can afford them. Yep, economies of scale mean that you reduce unit costs and increase your margins - making it possible to afford the bigger rents. A sole trader, even one that is popular, may struggle to compete.